Real-Time ETF Trading Restrictions and Bank Onboarding Procedures in Focus
Banks in South Korea continue to request regulatory approval to allow real-time ETF trading within retirement pension accounts, but financial authorities remain firm in rejecting such proposals. Presently, banks collect customers’ ETF orders and process them in batches through securities companies, resulting in a time lag compared to the instantaneous trades available at securities firms. This delay can adversely affect investment outcomes, creating a potential disadvantage for bank clients versus direct brokerage users. The banking industry stresses the significance of enabling real-time transactions to ensure fair competition and better returns for customers.
Meanwhile, subscriptions to ETF products at the four major banks in Seoul are on the rise, drawing attention to procedural complexities, especially in face-to-face onboarding. On average, in-person ETF account setup takes about an hour, whereas non-face-to-face digital processes can be completed in under ten minutes, offering much greater convenience. Experts recommend streamlining the procedures for in-person subscriptions and strengthening consumer protection measures for digital onboarding. As retail ETF investment grows, further institutional and procedural improvements are expected to enhance accessibility and efficiency in the Korean ETF market.
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1 hour for ETF subscription at bank counters... Only 10 minutes on mobile - Seoul Economic Daily"Will it be alright if the explanation takes more than 40 minutes?" In the morning of the 31st at A Bank's branch in Seoul. Upon requesting to subscribe to a semiconductor ETF trust product, the counter staff explained that the procedure is lengthy and informed about the duration required. The ETF sales of the four major banks amounted to 3.5 trillion won in November last year.
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